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Comprehensive Problem 4-20 In 2020, Professor Patricia (Patty Paterred to the Palm Springs Culinary Arts Academy (PSCAA). She is a single agayer and is 12

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Comprehensive Problem 4-20 In 2020, Professor Patricia (Patty Paterred to the Palm Springs Culinary Arts Academy (PSCAA). She is a single agayer and is 12 years old Patty lives at 98 colander Street, Apt. 2060, Henderon, 10052. Professor Pat's Sootcut numer 65-66978In 2020,Pattehad Just a few months of salary from her previous job Wages Federal tax withheld State tax wereld 59,900 450 0 Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condoned for 6 days 2030 for as a month but molu problem was discovered in the conto, her renters moved out, and she was unable to rent the apartment whether he retty gorously pursuing new tenants). Patytively manages the property. The following are the most expenses to the rental Real estate cares $4,000 Mortgage interest 9.000 Thurance 350 Depreciation assume yeprecated) 0 Homeowners Assocation des 1,250 par Gardening 55 1,200 Instructions Form 1040 Schedule Schedule Form 8949 Schedule Form 6502 Tax Table 1 2b 3b 4b 5b 6b 7 Instructions Form 1040 1 In Wages, salaries, tips, etc. Attach Form(s) W-2 Altach 2a Tax-exempt interest 2a b Taxable interest Sch. Bir ju required 3a Qualified dividends... 3a b Ordinary dividends 4a TRA distributions. 4a b Taxable amount 5a Pensions and annuities Sa d Taxable amount Standard 6a Social security benefits b Taxable amount Deduction for 7 Capital gain or loss). Attach Schedule D if required. If not required, check here... Single or Pa Married ling 8 Other Income from Schedule 1, line 9 mi separately, VIC $12,400 9 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income Married fiting 10 Adjustments to income: Jointly or Qualifying a From Schedule 1, line 22. 10a widower), $24,800 b Charitable contributions if you take the standard deduction Head of See instructions 10b household c Add lines 10 and 106. These are your total adjustments to income $18,650 . If you checked 11 Subtract line 10c from line 9. This is your adjusted gross income any box under Standard 12 Standard deduction or itemized deductions from Schedule A) Deduction, see 13 Qualified business income deduction. Attach Form 8995 or Form 1995- instations 8 9 100 11 12 13 1040 instructions. 14 Add lines 12 and 13 14 15 15 Taxable income. Subtract line 14 from line 11. 1f zero or less, enter -0. -r Disclosure, Privacy Act, and paperwork Reduction Act Notice, see separate instructions. Cat No. 11320B Form 1040 (2020) orm 1040 (2020) Patricia Pat 565-66-9378 Page 2 16 Tax (see instructions). Check if any from Form(s): 1 0 8814 24972 30 16 17 17 18 Amount from Schedule 2, line 3 Add Iines 16 and 17... Child tax credit or credit for other dependents 18 19 19 20 Amount from Schedule 3, line 7 20 21 Add lines 19 and 20 21 22 22 23 Subtract line 21 from line 18. If zero or less, entero- Other taxes, including self-employment tax, from Schedule 2, line 10 Add lines 22 and 23. This is your total tax 23 24 24 25 Federal income tax withheld from a Form(s) W-2 25a Ce Form 1040 In Pe dAdd lines 25 through 25 250 If you have a 26 2020 este taxoments and amount ape from 2019 return 26 quallyng child 27 attach Sch. EIC Earned income credit (EIC) 27 If you have 28 Adetonal child tax credit. Arch Schedule 28 nontaxable combat day, see 29 American opportunity crest from Rom 8863, toe 29 instructions. 30 Recovery rebate credit. See Instructions 30 31 Amount from schedule, line 13 31 32 Add lines 27 through 31. These are your total other payments and refundable credits mi VIC 33 Refund 34 352 33 Addlines 250, 26, and 32. These are your total payments 34 Ipine 33 is more than the 24, suborect line 24 from lice 32 This is the amount you overpaid 35 Amount of in 34 you want refunded to you. Form 1388 che check Routing number Type: Cheong Sa d Account number 36 Amount of line 34 you want applied to your 2021 estimated 36 Direct depot See Instructions Form 1040 Schedule 1 1 2a 3 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule 4 Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 6 Farm income or loss). Attach Schedule 7 Unemployment compensation Other Income. List type and amount 4 5 5 Pa 6 mi 7 V . 9 Combine lines 1 through B. Enter here and on Form 1040, 1040-SR, or !040-NR, fine Part 11 Adjustments to Income 10 Educator expenses 10 11 11 Certain business expenses of reservists, performing artists, and feebasis government officials. Attach Form 2106 12 Health savings account deduction Attach Form 889 Check My Work more Check My Worong Yes. Go to line 18 No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount any, from line 7 of that worksheet 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet 19 20 Are lines 18 and 19 both ero or blank? Yes. Complete the Qualified Dividends and capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 16. Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions, Don't complete lines 21 and 22 below. 2i ir line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7, the smaller of Com En 20 Patty JUST w Fed Form 1040 boss completes marwy forms with the need you need (D) long term ansactions rented on Form) 10990 showing basis was reported to the IRS Note (B) Long term transactions reported on Form) 1090-8 showing the reported to the (F) Long term transactions not reported to you in Form 1099 1 Aitjustment, if any, to gain or (h) loss. If you enter an amount in Gain or colo), enter a code in foss) Controther Subtract See the separate (a) (6) (a) basis. See the (b) instructions Proceeds co) Description of property Date sold or (sales prio Note below Date acquired from com (Example: 100 sh.XYZ disposed of and see see (D (o) (Mocay and Co.) (Moday y) Column(e) in Instructions Code(s) from Amount of combine the the one truction adjustment instructions Primary residence 7/15/90 2/27/20 Patty mold vigor Red Mol Ins Del Ho Red Gai Form 8949 2 Totals. Add the amounts in columns (d), (e), (e), and (h) (subtract negative amounts) Enter cach total here and include on your schedule D line 3b ( Box D above is checked), line 9 (if Box E above is checked), or line 10 Box Fabove is checked) Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the RS, and enter an adjustment in column (9) to correct the basis. See Column (9) in the separate instructions for how to figure the amount of the adjustment Form 8949 (2020) ty 9 10 va 11 9 Insurance 10 Legal and other professional fees. 11 Management fees 12 Mortgage interest paid to banks, et see instructions) 13 Other interest 14 Repairs 15 Supplies 16 Taxes od ta 12 13 ty id 15 ar 16 0 0 I DITO 17 17 Sea 18 18 oi 19 19 ng 20 20 De Utilities Depreciation expense or depletion Other (list) Gardening and homeowner's dues Total expenses. Add lines 5 through 19 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (los), ses instructions to find out if you must le Form 6198 Deductible rental real estate loss after limitation, if any, on Form 582 (see instructions) Ho 21 ROE 21 Sai 22 22 23a Total of all amounts reported on line 3 for all rental properties 23a bTotal of all amounts reported on line 4 for all royalty properties 23 c Total of all amounts reported on line 12 for all properties 230 d Total of all amounts reported on line 18 for all properties 23d e Total of all amounts reported online 20 for all properties 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 26 Total rental real estate and royalty income or (los). Combine lines 24 and 25. Enter the result here. Parts I1, II, IV, and line 40 on page 2 do not apply to you, aise enter this amount on Schedule 1 (Form 26 1040). in 5. Otherwise, include this amount in the total on line 41 on page 2 Cat No. 11344 Schedule E (Form 1040) 2020 For Paperwork Reduction Act Notice, see the separate instructions. 14 Form 8582 Rental Real Estate Activities with Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions) 1a Activities with net income Center the amount from Worksheet 1 column (> 1a b Activities with net loss center the amount from Worksheet 1 column (b) 1b Prior years' unallowed losses (enter the amount From Worksheet 1 column (c)) le d Combine Ines 1a, 1b, and te Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2 column() Za b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) 2b Add fines 2a and 2b All Other Passive Activities Ja Activities with net income (enter the amount from Worksheet 3 column()) 3b b Activities with net loss (enter the amount from Worksheet 3 column (1) Prior years' unallowed losses (enter the amount from Worksheet 3 column c If 20 all losses are allowed, including any prior year unallowed losses entered on line 1c, 25, or 3c Report the losses on the forms and schedules normally used If line 4 is a loss and Line Id is a loss, go to Part 1 Une 2c is a loss and line 1d is zero or more), skip Part II and go to Part II Line 3d is a loss (and lines 1 and 2c are reo or more), sklo Parts II and III and go to line 15 Caution: If your ning status is married filing separately and you lived with your spouse at any time during the you, do not complete Put It or Part II. Instead, go to line 15 Part II Special Allowance for Rental Real Estate Activities with Active Participation Note Enter a numbers in Part II as positive amounts. Seestructions for an example 5 Enter the smaller of the loss on line 1d or the loss on line 4 6 Enter $150,000. If married filling separately, see instructions 6 7 Enter modified adjusted gross income, but not less than zero. See 7 instructions Note: If line 7 is greater than or equal to line 6, skipines 8 and 9, entero on line 10. Otherwise, go to line 8 8 9 Subtract line 7 from line 6 Multiply line 8 by 50% (0.5). Do not enter more than $25,000. If married filing separately, see instructions 9 Accounting uten find Form 8582 Part IV Total Losses Allowed 15 15 Add the income, if any, on lines la and 3a and enter the total 16 Total losses allowed from all passive activities for 2020. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return For Paperwork Reduction Act Notice, see instructions. Cat. No, 63704F 16 Form 8582 (2020) Page 2 Form 1045 (2020) Patricia Pt 565-66-9378 Schedule A-NOL (see instructions) 1 For individuals, subtract your standard deduction or itemized deductions from your adjusted gross income and enter it here. For estates and trusts, enter taxable income increased by the total of the charitable 1 deduction, Income distribution deduction, and exemption amount (see instructions 2 Nonbusiness capital fosses before limitation. Enter as a positive number (see Instructions) 2 3 Nonbusiness capital gains (without regard to any section 1202 exclusion). 3 4 If fine 2 is more than line 3, enter the difference. Otherwise, enter -- 4 5 If line 3 is more than line 2, enter the difference. 5 3 5 6 If line 3 is more than line 2. enter the difference Otherwise, enter-0- Nonbusiness deductions (see instructions) Nonbusiness income other than capital gains (see Instructions) Add lines 5 and 7 6 7 7 8 8 9 If line 6 is more than line 8, enter the difference. Otherwise, enter- 10 ar Nne 8 is more than line 6, enter the difference. Otherwise, enter -0. But don't enter more than line 5 10 11 Business capital losses before limitation. Enter as a positive number 12 Business capital gains (without regard to any section 1202 exclusion) 12 13 Add lines 10 and 12. 11 13 14 Subtract line 13 from line 11. If zero or less, enter-O- 14 15 Add lines 4 and 14 15 16 Enter the loss, if any, from line 16 of your 2019 Schedule D (Form 1040). (For notate and teacher the incinha Instructions Form 1040 Schedule Schedule Form 340 Schedule E Form 5.2 Tax Table Instructions Comprehensive Problem 4-28 In 2020, Professor Patricia (Patty) Pot retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old. Patty lives at 98 Colander Street, Apt. 2060, Henderson, NV 89052. Professor Pite's Social Security number is 565-66-9378. In 2020, Patty had just a few months of salary from her previous job! Wages Pederal tax withheld State tax withheld $9.900 450 0 Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rented for 60 days of 2020 for $850 a month but a mold problem was discovered in the condo, her renters moved out, and she was unable to rent the apartment after the repairs (despite Patty vigorously pursuing new tenants), Patty actively manages the property herself. The following are the related expenses for the rental house: Real estate taxes 54,000 Mortgage interest 9,000 Insurance 550 Depreciation (assume fully depreciated) 0 Homeowners' Association dues Repairs 1,200 Gardening 575 1.250 Ochedula1 Schedule Form 8940 Schedule Form 5582 The Table Instructions Depreciation (assume Pully depreciated) O Homeowners' Association dues 1,250 Repairs 1,200 Gardening 575 Advertising 1,200 The condo was purchased on August 31, 1981. Patty handles all rental activities (e. rent collection, finding tenants, etc.) herself, In 2020, Patty sold her beloved home of almost 30 years for $380,000 on February 27, 2020. Her bosis in the home was $120,000 and she acquired the home sometime in July of 1990 (she could not remember the day). Patty received a $1,200 EIP in 2020 Required: Complete Form 1040 and the schedules and forms provided for party The taxpayer had health coverage for the entire year. The taxpayer does not want to make a contribution to the presidential election campaign. Do not complete Form 4562 for reporting depreciation. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "O". If required, round amounts to the nearest dollar. Enter all amounts as positive numbers except for the following special instructionsIf required, on Form 1040, line 17 and on Schedule E, on line 21, 25, and 26, use the minus sign to indicate a loss. On Form 8582, if required, use the minus sign to enter a "loss" as a negative number on the lines id and 4. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. Comprehensive Problem 4-20 In 2020, Professor Patricia (Patty Paterred to the Palm Springs Culinary Arts Academy (PSCAA). She is a single agayer and is 12 years old Patty lives at 98 colander Street, Apt. 2060, Henderon, 10052. Professor Pat's Sootcut numer 65-66978In 2020,Pattehad Just a few months of salary from her previous job Wages Federal tax withheld State tax wereld 59,900 450 0 Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condoned for 6 days 2030 for as a month but molu problem was discovered in the conto, her renters moved out, and she was unable to rent the apartment whether he retty gorously pursuing new tenants). Patytively manages the property. The following are the most expenses to the rental Real estate cares $4,000 Mortgage interest 9.000 Thurance 350 Depreciation assume yeprecated) 0 Homeowners Assocation des 1,250 par Gardening 55 1,200 Instructions Form 1040 Schedule Schedule Form 8949 Schedule Form 6502 Tax Table 1 2b 3b 4b 5b 6b 7 Instructions Form 1040 1 In Wages, salaries, tips, etc. Attach Form(s) W-2 Altach 2a Tax-exempt interest 2a b Taxable interest Sch. Bir ju required 3a Qualified dividends... 3a b Ordinary dividends 4a TRA distributions. 4a b Taxable amount 5a Pensions and annuities Sa d Taxable amount Standard 6a Social security benefits b Taxable amount Deduction for 7 Capital gain or loss). Attach Schedule D if required. If not required, check here... Single or Pa Married ling 8 Other Income from Schedule 1, line 9 mi separately, VIC $12,400 9 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income Married fiting 10 Adjustments to income: Jointly or Qualifying a From Schedule 1, line 22. 10a widower), $24,800 b Charitable contributions if you take the standard deduction Head of See instructions 10b household c Add lines 10 and 106. These are your total adjustments to income $18,650 . If you checked 11 Subtract line 10c from line 9. This is your adjusted gross income any box under Standard 12 Standard deduction or itemized deductions from Schedule A) Deduction, see 13 Qualified business income deduction. Attach Form 8995 or Form 1995- instations 8 9 100 11 12 13 1040 instructions. 14 Add lines 12 and 13 14 15 15 Taxable income. Subtract line 14 from line 11. 1f zero or less, enter -0. -r Disclosure, Privacy Act, and paperwork Reduction Act Notice, see separate instructions. Cat No. 11320B Form 1040 (2020) orm 1040 (2020) Patricia Pat 565-66-9378 Page 2 16 Tax (see instructions). Check if any from Form(s): 1 0 8814 24972 30 16 17 17 18 Amount from Schedule 2, line 3 Add Iines 16 and 17... Child tax credit or credit for other dependents 18 19 19 20 Amount from Schedule 3, line 7 20 21 Add lines 19 and 20 21 22 22 23 Subtract line 21 from line 18. If zero or less, entero- Other taxes, including self-employment tax, from Schedule 2, line 10 Add lines 22 and 23. This is your total tax 23 24 24 25 Federal income tax withheld from a Form(s) W-2 25a Ce Form 1040 In Pe dAdd lines 25 through 25 250 If you have a 26 2020 este taxoments and amount ape from 2019 return 26 quallyng child 27 attach Sch. EIC Earned income credit (EIC) 27 If you have 28 Adetonal child tax credit. Arch Schedule 28 nontaxable combat day, see 29 American opportunity crest from Rom 8863, toe 29 instructions. 30 Recovery rebate credit. See Instructions 30 31 Amount from schedule, line 13 31 32 Add lines 27 through 31. These are your total other payments and refundable credits mi VIC 33 Refund 34 352 33 Addlines 250, 26, and 32. These are your total payments 34 Ipine 33 is more than the 24, suborect line 24 from lice 32 This is the amount you overpaid 35 Amount of in 34 you want refunded to you. Form 1388 che check Routing number Type: Cheong Sa d Account number 36 Amount of line 34 you want applied to your 2021 estimated 36 Direct depot See Instructions Form 1040 Schedule 1 1 2a 3 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule 4 Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 6 Farm income or loss). Attach Schedule 7 Unemployment compensation Other Income. List type and amount 4 5 5 Pa 6 mi 7 V . 9 Combine lines 1 through B. Enter here and on Form 1040, 1040-SR, or !040-NR, fine Part 11 Adjustments to Income 10 Educator expenses 10 11 11 Certain business expenses of reservists, performing artists, and feebasis government officials. Attach Form 2106 12 Health savings account deduction Attach Form 889 Check My Work more Check My Worong Yes. Go to line 18 No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount any, from line 7 of that worksheet 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet 19 20 Are lines 18 and 19 both ero or blank? Yes. Complete the Qualified Dividends and capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 16. Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions, Don't complete lines 21 and 22 below. 2i ir line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7, the smaller of Com En 20 Patty JUST w Fed Form 1040 boss completes marwy forms with the need you need (D) long term ansactions rented on Form) 10990 showing basis was reported to the IRS Note (B) Long term transactions reported on Form) 1090-8 showing the reported to the (F) Long term transactions not reported to you in Form 1099 1 Aitjustment, if any, to gain or (h) loss. If you enter an amount in Gain or colo), enter a code in foss) Controther Subtract See the separate (a) (6) (a) basis. See the (b) instructions Proceeds co) Description of property Date sold or (sales prio Note below Date acquired from com (Example: 100 sh.XYZ disposed of and see see (D (o) (Mocay and Co.) (Moday y) Column(e) in Instructions Code(s) from Amount of combine the the one truction adjustment instructions Primary residence 7/15/90 2/27/20 Patty mold vigor Red Mol Ins Del Ho Red Gai Form 8949 2 Totals. Add the amounts in columns (d), (e), (e), and (h) (subtract negative amounts) Enter cach total here and include on your schedule D line 3b ( Box D above is checked), line 9 (if Box E above is checked), or line 10 Box Fabove is checked) Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the RS, and enter an adjustment in column (9) to correct the basis. See Column (9) in the separate instructions for how to figure the amount of the adjustment Form 8949 (2020) ty 9 10 va 11 9 Insurance 10 Legal and other professional fees. 11 Management fees 12 Mortgage interest paid to banks, et see instructions) 13 Other interest 14 Repairs 15 Supplies 16 Taxes od ta 12 13 ty id 15 ar 16 0 0 I DITO 17 17 Sea 18 18 oi 19 19 ng 20 20 De Utilities Depreciation expense or depletion Other (list) Gardening and homeowner's dues Total expenses. Add lines 5 through 19 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (los), ses instructions to find out if you must le Form 6198 Deductible rental real estate loss after limitation, if any, on Form 582 (see instructions) Ho 21 ROE 21 Sai 22 22 23a Total of all amounts reported on line 3 for all rental properties 23a bTotal of all amounts reported on line 4 for all royalty properties 23 c Total of all amounts reported on line 12 for all properties 230 d Total of all amounts reported on line 18 for all properties 23d e Total of all amounts reported online 20 for all properties 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 26 Total rental real estate and royalty income or (los). Combine lines 24 and 25. Enter the result here. Parts I1, II, IV, and line 40 on page 2 do not apply to you, aise enter this amount on Schedule 1 (Form 26 1040). in 5. Otherwise, include this amount in the total on line 41 on page 2 Cat No. 11344 Schedule E (Form 1040) 2020 For Paperwork Reduction Act Notice, see the separate instructions. 14 Form 8582 Rental Real Estate Activities with Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions) 1a Activities with net income Center the amount from Worksheet 1 column (> 1a b Activities with net loss center the amount from Worksheet 1 column (b) 1b Prior years' unallowed losses (enter the amount From Worksheet 1 column (c)) le d Combine Ines 1a, 1b, and te Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2 column() Za b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) 2b Add fines 2a and 2b All Other Passive Activities Ja Activities with net income (enter the amount from Worksheet 3 column()) 3b b Activities with net loss (enter the amount from Worksheet 3 column (1) Prior years' unallowed losses (enter the amount from Worksheet 3 column c If 20 all losses are allowed, including any prior year unallowed losses entered on line 1c, 25, or 3c Report the losses on the forms and schedules normally used If line 4 is a loss and Line Id is a loss, go to Part 1 Une 2c is a loss and line 1d is zero or more), skip Part II and go to Part II Line 3d is a loss (and lines 1 and 2c are reo or more), sklo Parts II and III and go to line 15 Caution: If your ning status is married filing separately and you lived with your spouse at any time during the you, do not complete Put It or Part II. Instead, go to line 15 Part II Special Allowance for Rental Real Estate Activities with Active Participation Note Enter a numbers in Part II as positive amounts. Seestructions for an example 5 Enter the smaller of the loss on line 1d or the loss on line 4 6 Enter $150,000. If married filling separately, see instructions 6 7 Enter modified adjusted gross income, but not less than zero. See 7 instructions Note: If line 7 is greater than or equal to line 6, skipines 8 and 9, entero on line 10. Otherwise, go to line 8 8 9 Subtract line 7 from line 6 Multiply line 8 by 50% (0.5). Do not enter more than $25,000. If married filing separately, see instructions 9 Accounting uten find Form 8582 Part IV Total Losses Allowed 15 15 Add the income, if any, on lines la and 3a and enter the total 16 Total losses allowed from all passive activities for 2020. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return For Paperwork Reduction Act Notice, see instructions. Cat. No, 63704F 16 Form 8582 (2020) Page 2 Form 1045 (2020) Patricia Pt 565-66-9378 Schedule A-NOL (see instructions) 1 For individuals, subtract your standard deduction or itemized deductions from your adjusted gross income and enter it here. For estates and trusts, enter taxable income increased by the total of the charitable 1 deduction, Income distribution deduction, and exemption amount (see instructions 2 Nonbusiness capital fosses before limitation. Enter as a positive number (see Instructions) 2 3 Nonbusiness capital gains (without regard to any section 1202 exclusion). 3 4 If fine 2 is more than line 3, enter the difference. Otherwise, enter -- 4 5 If line 3 is more than line 2, enter the difference. 5 3 5 6 If line 3 is more than line 2. enter the difference Otherwise, enter-0- Nonbusiness deductions (see instructions) Nonbusiness income other than capital gains (see Instructions) Add lines 5 and 7 6 7 7 8 8 9 If line 6 is more than line 8, enter the difference. Otherwise, enter- 10 ar Nne 8 is more than line 6, enter the difference. Otherwise, enter -0. But don't enter more than line 5 10 11 Business capital losses before limitation. Enter as a positive number 12 Business capital gains (without regard to any section 1202 exclusion) 12 13 Add lines 10 and 12. 11 13 14 Subtract line 13 from line 11. If zero or less, enter-O- 14 15 Add lines 4 and 14 15 16 Enter the loss, if any, from line 16 of your 2019 Schedule D (Form 1040). (For notate and teacher the incinha Instructions Form 1040 Schedule Schedule Form 340 Schedule E Form 5.2 Tax Table Instructions Comprehensive Problem 4-28 In 2020, Professor Patricia (Patty) Pot retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old. Patty lives at 98 Colander Street, Apt. 2060, Henderson, NV 89052. Professor Pite's Social Security number is 565-66-9378. In 2020, Patty had just a few months of salary from her previous job! Wages Pederal tax withheld State tax withheld $9.900 450 0 Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rented for 60 days of 2020 for $850 a month but a mold problem was discovered in the condo, her renters moved out, and she was unable to rent the apartment after the repairs (despite Patty vigorously pursuing new tenants), Patty actively manages the property herself. The following are the related expenses for the rental house: Real estate taxes 54,000 Mortgage interest 9,000 Insurance 550 Depreciation (assume fully depreciated) 0 Homeowners' Association dues Repairs 1,200 Gardening 575 1.250 Ochedula1 Schedule Form 8940 Schedule Form 5582 The Table Instructions Depreciation (assume Pully depreciated) O Homeowners' Association dues 1,250 Repairs 1,200 Gardening 575 Advertising 1,200 The condo was purchased on August 31, 1981. Patty handles all rental activities (e. rent collection, finding tenants, etc.) herself, In 2020, Patty sold her beloved home of almost 30 years for $380,000 on February 27, 2020. Her bosis in the home was $120,000 and she acquired the home sometime in July of 1990 (she could not remember the day). Patty received a $1,200 EIP in 2020 Required: Complete Form 1040 and the schedules and forms provided for party The taxpayer had health coverage for the entire year. The taxpayer does not want to make a contribution to the presidential election campaign. Do not complete Form 4562 for reporting depreciation. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "O". If required, round amounts to the nearest dollar. Enter all amounts as positive numbers except for the following special instructionsIf required, on Form 1040, line 17 and on Schedule E, on line 21, 25, and 26, use the minus sign to indicate a loss. On Form 8582, if required, use the minus sign to enter a "loss" as a negative number on the lines id and 4. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts

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